Clearance of border goods to take hours

 

Though African governments have embraced regional integration since independence, border crossing has never been easy as it was in the colonial days.

 

George Opokomit aged 87 a petty businessman along the Malaba-Kenya border describes today’s border crossing “very disheartening’.

 

“During our days, we didn’t need passports to cross. I would just walk across with my merchandise un- touched and return unbothered,” said Opokomit who deals in groceries.

 

He says it is not unusual to find hundreds of trucks parked at the Malaba and Busia customs yard every day awaiting clearance from customs.

 

“This border thing should not be there because are the same? But you find drivers spending nights in the cold because they have not yet been cleared. Even if the customs officials see them every day crossing,” he said.

 

Joshua Owora Omita another elder in Busia says strict border measures restrict free movement of goods and services.

‘I remember I would to ride my bicycle to Kisumu without being asked a passport or tax. I would then return with my merchandise and even sell the surplus. This has stopped with the emergence of borders with strict customs official and laws,” said Owora, a mechanic.

He says the problem is exacerbated by the multiple documentation and procedures which are not standardized.

“This is exacerbated by poorly developed transport systems that were designed in colonial times to transport primary products to the port,” he said.

Owora explains that despite the regional integration the issue of barriers (borders) obstructs trade.

 

 

The burden of border clearance is however set to change and improve for the better. Clearance of goods at the border posts will be shortened from days to just hours following a boost of $15m (sh42b) for border post infrastructural development.

 

Feasibility studies for the border post upgrades were ready by last year and the design works were approved late last year.

The posts to be upgraded include: Busia in eastern Uganda, Mutukula and Mirama hills in South Western Uganda. The funds for the upgrade of the posts into a one stop border post (OSBP) were provided by Trademark East Africa.

 

Trade Minister Amelia Kyambadde said the upgrade of the border posts would curb smuggling increasing government revenue.

 

“The cost of doing business is high because you end up bribing everybody along the way. This new system will streamline the activities at the border posts and cut costs and time,” she said.

 

A similar concept that kicked off in 2009 is already being used at the Malaba border post.

 

 

The new system will use electronic single windows allowing importers and exporters to get their trade details online at the click of a mouse.

 

Mutukula, Mirama Hill and Busia upgrades are expected to be completed by 2013, before similar works start for the Nimule border post in West Nile.

 

Similar border upgrades currently on-going at Namanga border posts at the Kenya -Tanzania border and in Rusomo at the Rwanda -Tanzania border are aimed at enhanced regional transport and trade facilitation.

 

Feasibility studies have also been completed on the OSBPs that would be constructed at Holili/Taveta, Horohoro/ Lunganga, Mutukula, Kigoma, and Busia, Malaba and at the main border station between Burundi and Rwanda.

 

Japan is also supporting the EAC in preparing legal, institutional and operational frameworks for the OSBPs and integrated border management. This will, among other things, lead to development of EAC OSBP Act and OSBP operational model.

 

Already training is underway for experts from the five partner states - Tanzania, Uganda, Kenya, Burundi and Rwanda, including the use of ICT systems on how to operationalise the posts once complete.

 

The project is being funded by Trade Mark East Africa (TMEA) and the World Bank.

 

The one-stop border points are part of EAC governments' plan to increase trade among member states by fast-tracking clearance of goods and human traffic, and designed to facilitate the proposed common market.

 

The EAC finalised a legal framework for the one-stop border posts that was approved by the Council of Ministers and is aimed at enabling partner states to harmonise their systems and facilitate trade more effectively and efficiently.

 

Moses Sabiiti the programme manager Trade Mark East Africa says through the one-stop border posts, all immigration activities, custom clearances and other formalities would be carried out under one roof at a single desk.

 

“Currently the situation is full of confusion with travelers, traders and tourists moving through the member countries being subjected to the formality of checks twice - in each country's customs and immigration offices,” said Sabiiti.

 

He said the long term of the One- stop border post is to eliminate the non- tariff barriers to trade.

 

“The concept will involve immigration and customs officials from two countries sharing services under one roof,” he said.

 

The EAC created a Customs Union in 2005. Key benefits arising from this have included increased intra-EAC trade (for Uganda, the value of intra-regional trade nearly tripled between 2005 and 2008), revenue collection and investment. The signing of the Common Market Protocol in 2010 marked a significant further step towards regional integration. This, when fully implemented, allows free movement of goods, people, capital and technology as a platform for greater productivity and more competitive markets in global trade. It also creates a larger market for traders and investors and allows for significant economies of scale through increased production.

 

 

Uganda has prioritised regional integration as a key part of its economic development policy. The country’s relatively small markets, land-locked status, and low purchasing power mean that deepening regional integration, removing regional trade barriers and lowering transport costs are central to sustaining growth and reducing poverty.

 

A study  of transportation along the northern corridor found that the hidden costs of delays form 40% of total logistics costs from Mombasa to Kampala. Furthermore, a 15% drop in the total cost of transport is expected to lead to a 37% increase in the volume of trade.

 

According to Sabiiti, TMEA in Uganda has supported Government of Uganda with a budget of $64m, 54% which is committed to the establishment of selected one-stop border posts (OSBPs).

 

According to Uganda Revenue Authority officials, once completed, the OSBPs will reduce the time trucks take to cross border posts at Busia, Mutukula, and Mirama Hills by 30%.

 

Time spent in the transportation of containers from Mombasa Port to Kampala is expected to reduce by 15% while the customs clearance time will reduce by 50%.